1. A businessman wants to buy a truck. The dealer offers to sell the truck for either ?$111,000 ?now, or 4 yearly payments of ?$32,107?, with the first payment one year after the purchase of the truck.
What is the yearly interest rate being offered by the dealer? (to the? customer)?
2. Which financial ratios would be most useful for a financial manager’s internal financial analysis?
3. How can an analyst try to decide on which stocks are most attractive within an industry by using financial ratios?